Use the words Accounting, Assets, Expenses Balance sheet, Income statement, Profit, Capital, Liabilities to (1) __ Accounting __ summarizes and submits financial information of a business or organization in reports and statements. One of the most important financial reports is the (2) . This report shows the economic performance of a business, whether it has made a (3) or loss. The basic format is revenues less (4) equals income (in Britain income is called profit). If expenses are greater than sales, then there is a loss. Another very important report is the (5) . This shows assets, liabilities, and owner’s equity of the business on a specific day, usually the last day of the accounting year. (6) are normally divided into current and non-current assets. Current assets are the assets that are used to fund day-to-day operations and pay ongoing expenses. Noncurrent assets are intended for use in the long-term operations of a business. Non- current assets will still be with the company in several years. (7) can be either short term or long term. The former are current liabilities, which are debts payable within one year, while the latter are classified as long-term liabilities, which are debts payable over a longer period